Market Update – September 9 – USD Cools, Yen, Stocks & BTC Rally

USDIndex – Slumps as YEN & EUR spike. A brief rally back to 110.00, faded following ECB’s hawkish 75bp hike and similarly Hawkish comments from both Lagarde and Powell. Trades at 108.90. Comments from Japanese officials lifts the YEN and weak Chinese inflation data exposes demand weakness.
EURECB moved by 75bp and suggested more significant hikes to come. EUR rallied back to through Parity and trades at 1.0065 now. 
JPY having rejected 145.00, combined comments from Suzuki, Matsuno & Kuroda lifts the YEN and the pair trade at 142.90.  
GBP 1.1500 support held yesterday and a follow through move today takes Cable to 1.1600 resistance. 
Stocks US stocks moved higher again as Dollar & Yields cooled (S&P500 4006) FUTS trade at 4011. Asian stock markets have rallied, and European FUTS are little changed, the FTSE100 up 0.3%.

USOil recovered from $81.40 lows to $83.50 now on chatter of more supply issues. 20-day moving average sits at $90.00.
Gold – also rallied to $1725 and holds the key $1700 at $1721 now.
BTC – rallied higher as the ETH merge (offering  a 99.9% reduction in power consumption!!). Spiked from $18.k on Wednesday to $20.6k now.

Overnight & Today Canadian jobs report, EU energy meeting, Speeches from ECB’s Lagarde, Fed’s Evans, Waller & George.

Biggest FX Mover @ (06:30 GMT) GBPCHF (-0.31%). Continues to decline, yesterday breaking under 1.1300 to 1.1220 lows which are being re-tested now. MAs aligning lower,  MACD histogram negative & signal line neutral, RSI 39.90,  H1 ATR 0.00137, Daily ATR 0.00814.


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Stuart Cowell

Head Market Analyst

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